The Organisation of Petroleum Exporting Countries (OPEC) has raised Nigeria’s crude oil production output to 1.83 million barrel per day from the present 1.554mbd.
The new output will take effect from April 2022 and last till May 2022, according to latest quota by the global oil cartel.
The increase is coming on the heels of the organisation’s decision to raise its output by 0.4 million barrel/day on a monthly basis, starting from August 2021 until the phasing out of 5.8 mbd production adjustment in December 2021.
The output quota was announced in the organisation’s Declaration of Cooperation statement from OPEC 19th and non-OPEC ministerial meeting in Vienna, Austria.
OPEC added that it was in view of the current oil market fundamentals and the consensus on its outlook.
The statement said participating countries reaffirmed “the framework of the Declaration of cooperation, signed on December 10, 2016 and further endorsed in subsequent meetings, including on April 12, 2020. Extend the decision of the 10th OPEC and non-OPEC ministerial meeting (April 2020) until December 31, 2022”.
The statement added that the organisation would continue to adhere to the mechanism to hold monthly OPEC and non-OPEC ministerial meetings for the duration of the Declaration of Cooperation, to assess market conditions and decide on production level adjustments for the following month, endeavoring to end the production adjustment by the end of September 2022 subject to market conditions.
The statement also said OPEC decided to adjust as from May 1, 2022, the baseline for the calculations of the production adjustments according to the attached table.
The organisation reiterated the critical importance of adhering to full conformity and taking advantage of the extension of the compensation period until the end of September 2021.
It submitted that compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC ministerial meeting.
The organisation said it will hold the 20th OPEC and non-OPEC ministerial meeting on September 1, 2021.